Investment Thesis - Quanto, with a ~$9 million fully diluted valuation (FDV), presents a high-risk, high-reward investment opportunity in the perpetual futures exchange market, potentially offering 20x+ returns [1] - The core innovation lies in allowing users to deposit a wide range of crypto assets as collateral for trading perpetual futures, differentiating it from competitors like $HYPE, $DYDX, and $GMX [1][3][17] - The $QTO tokenomics, featuring a burn mechanism where 70% of fees are used to buy and burn $QTO, aims to create a deflationary effect and drive value accrual [5] Tokenomics and Flywheel Effect - Quanto's design incorporates a reflexive $QTO flywheel: fees are used to buy and burn $QTO, potentially burning 12% of the total supply and 20% of the circulating supply annually [5] - The remaining 30% of fees are allocated to the native liquidity providing vault (QLP), similar to GLP or HLP, supporting QTO liquidity [6] - Winners on the platform earn $QTO, and if the losing trade uses non-$QTO collateral, that collateral is automatically sold to buy $QTO, creating on-chain buying pressure [7] Risks and Considerations - The platform's support for a large set of smaller cap coins introduces the risk of market manipulation [12] - The reflexive nature of the $QTO flywheel can work negatively if $QTO price or trading volume declines [13] - Despite the risks, the unique functionality of allowing any coin as collateral provides a strong base of users [13] Competitive Advantages - Quanto's key differentiator is its cross-margining system, enabling users to deposit virtually any crypto asset as collateral to trade perpetual futures [3][5][17] - This feature unlocks capital efficiency and allows trading of a wider range of assets, including memecoins and altcoins [3] - If Quanto were to grow volumes and catch up to competitors, it would be a 19x to GMX's market cap and a 58x to DyDx's market cap from it's current $8 million FDV [17] Financials and Metrics - Since its launch on July 12th, Quanto has generated 25 million $QTO from fees, with 175 million $QTO burned (70% of fees), equating to approximately 330 thousand $QTO burned per day [15] - Annualizing this burn rate results in 120 million $QTO burned per year, representing 12% of the total supply or 20% of the circulating supply [15]